Public Buyers Funded, But Barely Own Bitari's Bitcoin Mining Operations

Bitari Inc., a Bitcoin mining host seeking to list on Nasdaq through an initial public offering (IPO), is asking public buyers for nearly all of its funding while handing them only 10% equity. In its preliminary S-1, the company proposes selling 4,285,715 shares at $7 each, raising $30 million in gross proceeds.

The consideration paid by public buyers amounts to 99.8% of total funds raised, while existing stockholders would retain 38.8 million shares, or 90% of outstanding stock after the offering.

This structure preserves control for AI Power X Inc., which would hold 85.87% of outstanding stock after the IPO. Chair Pei Zhao, the beneficial owner of those shares, would maintain his voting power.